Business Interruption – What you need to know

When it comes to Business Interruption, a shortfall in the length or level of insurance could mean the end. If a business doesn’t have time to get back on its feet before the interruption cover runs out, it is unlikely to survive.

That’s why we’re introducing the first Business Interruption Calculator that, in addition to helping you guide your clients towards insuring their business for the right sums, can determine the correct indemnity period that should be in place.

Many businesses have inadequate interruption cover

In our experience, clients will, more often than not, drastically underestimate the time it takes to recover from Business Interruption event. Around two thirds of businesses insure for 12 months or less, when most actually require between 18 to 24 months before they can return to business as usual.

Our calculator helps you to provide a realistic assessment of recovery timescales, but that’s not all. Even the most accurate assessment can’t account for the the curveballs life can throw. So, to protect against any unforeseen delays or surprises, our quotes come with the promise of an additional 12 months’ free cover.

Recovery takes time. We give your clients 12 months more of it.

Use the new calculator and, assuming the recommended level of cover is taken out, we’ll give enhanced cover – free of charge – to ensure your client is well protected from the risk of underinsurance. Specifically:

an additional 12 month indemnity period and proportionate increase in the sum insured over and above that recommended by the calculator, which will allow time for any unexpected delays.

the removal of ‘average provision’ from the policy

and for declaration linked policies a 150% uplift to cater for unforeseen positive business trends.

The calculator is just the latest Good Thinking from Aviva to combat commercial underinsurance and make life for you and your clients a little easier.

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J&A Brokers Ltd is authorised and regulated by the Financial Conduct Authority. Our Firm Reference Number (FRN) is 489422. You can check this on the FCA register by visiting the FCA’s website www.fca.gov.uk or by phone to the FCA on 0845 606 1234.